Luxury handbag brand Lulu Guinness has experienced a financial deficit due to its restructuring efforts. However, the company remains optimistic that these changes will ultimately lead to long-term improvements. Despite a 1% increase in sales to £10 million in the year ending on March 31, 2019, the brand faced challenges in achieving significant growth. Although online sales saw a promising 24% increase compared to the previous year and accounted for a third of total revenues, overall sales growth remained stagnant. This, combined with investments in online capabilities and restructuring costs, resulted in a loss of £517,000 for the year, a sharp decline from the £95,000 profit reported in the previous year.

To address these challenges, Lulu Guinness appointed David Hogson as its creative director in mid-2018. Hogson’s role encompasses collaboration with the founder on product design, development, and communications. The goal of this strategic move was to ensure that the brand’s unique DNA remains easily identifiable to its target customers in key markets such as the UK, US, and Asia. As part of its restructuring efforts, the company has closed an outlet store in Ireland, leaving it with only four physical retail locations. However, Lulu Guinness has plans to open a new site in Central London in 2020, potentially a concept store or creative space, in order to drive domestic and international growth.

In addition to these measures, Lulu Guinness has initiated a multi-year strategy focused on selling more products at full price. The company is also keen on exploring growth opportunities, particularly in the wholesale segment. These strategies reflect Lulu Guinness’ commitment to improving its financial standing and securing a prosperous future for the brand.

Useful links:
1. Lulu Guinness Official Website
2. Business of Fashion Website